You are given following transactions.
Required: Accounting Equation.
Note: If anybody have confusion in above given solution then comment me below.
- Kamal started a business with cash Rs. 30,000 and machinery Rs. 10,000.
- Purchased goods worth Rs. 15,000 from Bikash and partially paid Rs. 5,000.
- Cash deposited into bank Rs. 10,000.
- Paid to Bikash Rs. 9,000 in full settlement of his account.
- Loan received from NCC Bank Rs. 12,000.
Required: Accounting Equation.
S.No. | Transactions | Assets | = | Capital | + | Liabilities |
---|---|---|---|---|---|---|
1 | Business started with cash and machinery | +30,000 +10,000 | +40,000 | 0 | ||
Beginning Equation | 40,000 | = | 40,000 | + | 0 | |
2 | Goods purchased on cash and credit | +15,000 -5,000 | 0 | 10,000 | ||
New Equation | 50,000 | = | 40,000 | + | 10,000 | |
3 | Cash deposited into bank | +10,000 -10,000 | 0 | 0 | ||
New Equation | 50,000 | = | 40,000 | + | 10,000 | |
4 | Paid to Bikash | -9,000 | +1,000 | -10,000 | ||
New Equation | 41,000 | = | 41,000 | + | 0 | |
5 | Loan received from NCC Bank | +12,000 | 0 | +12,000 | ||
Final Equation | 53,000 | = | 41,000 | + | 12,000 |
Accounting Equation Problem 2
Reviewed by Ashim Shrestha
on
December 27, 2017
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